Earthstone Energy to Acquire Bighorn Permian Resources’ Midland Basin Asset for $860 Million
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Earthstone Energy, Inc. has entered into an agreement to acquire the assets of privately held Bighorn Permian Resources located in the Midland Basin.
The aggregate purchase price of the Bighorn acquisition is approximately $860 million, consisting of $770 million in cash and approximately 6.8 million shares of Earthstone’s class A common stock valued at $90. The effective date of the Bighorn acquisition will be January 1, 2022, with closing anticipated early in the second quarter of 2022.
“The transformation of Earthstone continues with the announcement of the significant and highly-accretive Bighorn acquisition. Combining the Bighorn acquisition with the four acquisitions completed in 2021 and the pending Chisholm acquisition, we will have more than quadrupled our daily production rate, greatly expanded our Permian Basin acreage footprint and increased our free cash flow generating capacity by many multiples since year-end 2020,” said Robert J. Anderson, president and CEO of Earthstone.
“The proximity of the Bighorn assets to existing Earthstone operations positions us to create further value by applying our proven operating approach to these assets, primarily in the form of reducing operating costs. The addition of the high cash flow producing assets from Bighorn to the strong drilling inventory of Earthstone, including the Chisholm acquisition, furthers Earthstone’s transformation into a larger scaled, low-cost producer with lower reinvestment in order to maintain combined production levels,” added Anderson.
The consideration for the Bighorn acquisition consists of approximately $770 million in cash and 6.8 million shares of Earthstone’s class A common stock to be issued to Bighorn, subject to customary closing adjustments.
About Earthstone Energy
Earthstone Energy, Inc. is a growth-oriented, independent energy company engaged in the development and operation of oil and natural gas properties. Its primary assets are located in the Permian Basin of west Texas.
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